HomeMy WebLinkAbout1982-072 Agrmt AMND 1 - BPA No DE-MS79-81BP90432 e,.
(AUTHENTICATED COPY)
Amendatory Agreement No. 1 to
Contract No. DE-MS79-81BP90432
June 3, 1982
AMENDATORY AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through
BONNEVILLE POWER ADMINISTRATION
and
THE CITY OF ASHLAND
This AMENDATORY AGREEMENT, executed December 18,1981, by the UNITED STATES
t
• OF AMERICA (Government), Department of Energy, acting by and through the
BONNEVILLE POWER ADMINISTRATION (Bonneville) , and THE CITY OF ASHLAND
(Purchaser) , a municipal corporation of the State of Oregon,
WITNESSETH :
WHEREAS Bonneville offered a power sales contract to the Purchaser on or
shortly after August 28, 1981, and the parties hereto have executed such power
sales contract (Contract No. DE-MS79-81SP90432, which as amended is
hereinafter referred to as "Power Sales Contract") providing for the sale and
delivery of firm power and energy to the Purchaser; and
WHEREAS the parties hereto have agreed that the words of certain sections
of such Power Sales Contract do not reflect the intent of the parties
negotiated prior to August 28, 1981; and
•
vil
Amendatory Agreement No. to
• Contract No. OE-M579-818
AMENDATORY AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT' OF ENERGY
acting by and through
BONNEVILLE POWER ADMINISTRATION
and
This AMENDATORY AGREEMENT; executed 19 by the
• UNITED STATES OF AMERICA (Government) , Department of Energy; acting by and
through the BONNEVILLE POWER ADMINISTRATION (Bonneville) , and
(Purchaser) ,
a of the State of ,
WITNESSETH :
WHEREAS Bonneville offered a power sales contract to the Purchaser on or.
shortly after August 28, 1981 , and the parties hereto have executed such power
sales contract (Contract No. DE-MS79-818P , which as amended is
hereinafter referred to as "Power Sales Contract" ) providing for the sale and
delivery of firm power and energy to the Purchaser; and
WHEREAS the parties hereto have agreed that the words of certain sections
of such Power Sales Contract do not reflect the intent of the parties
• negotiated prior to August 28, 1981 ; and
WHEREAS Bonneville is authorized pursuant to law to dispose of electric
power and energy generated at various Federal hydroelectric projects in the •
Pacific Northwest, or acquired from other resources, to construct and operate
transmission facilities, to provide transmission and other services, and to
enter into agreements to carry out .such authority;
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Effective .Date of Agreement. This amendatory agreement shall be
effective on the later of 2400 hours on the date of execution or the effective
date of the Power-Sales Contract.
2. Amendment of Power Sales Contract. The Power Sales Contract is
hereby amended as follows:
(a) Section 3 is amended as follows:
(1 ) Section 3(b) is deleted and replaced by a new section 3(b) as
follows:
"(b) "Actual Fi mt Peak Load" and "Actual Firm Energy Load" mean
the actual maximum integrated one-hour monthly peak and average
monthly energy loads, respectively, of the Purchaser's system in the
Pacific Northwest, for each Billing Month, after adjustment pursuant
to section 17(e) . Such actual loads shall not include any load to
the extent that the Purchaser had a unilateral right to interrupt
such load during such month, even if such load was not actually
interrupted, but shall include the amount of any load which the
Purchaser had a right to interrupt or actually interrupted for the
purpose of backing up or providing economic operation of its system
including its Firm Resources. In addition, any New Large Single Load
or portion of such load shall not be included in the Purchaser's firm •
loads hereunder prior to the date .Bonneville is obligated to supply
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• such load with Firm Power pursuant'to the terms of section 8(e) .
Contractual obligations of the Purchaser to utilities outside its
normal service area may, if permitted by the terms of section 12(a) ,
be included in the Purchaser's Firm Resources, but shall not be
included in the Purchaser's Actual Firm Loads hereunder. Actual Firm
Peak Load and Actual Firm Energy Load shall be referred to
collectively as "Actual' Firm Load."
(2) Section 3(o) is deleted and replaced by a new section 3(o) as
follows:
"(o) "Estimated Firm Peak Load" and "Estimated Firm Energy Loaa"
mean the best estimate of the maximum integrated lAour monthly peak
and average monthly energy loads of the Purchaser's system in the
Pacific Northwest which are equally likely to be less than or greater
than the Purchaser's actual peak and energy loads in each month under
normal weather conditions, except that the Purchaser may increase the
largest of such monthly peak loads during the Operating Year to
represent the peak load which is equally likely to be less than or
greater than the Purchaser's actual peak load during the Operating
Year. Such system loads shall be reduced by any and all loads to the
extent that the Purchaser has unilateral rights to interrupt
deliveries to such load during each month of such Operating Year,
excepting loads which the Purchaser has a right to interrupt for the
purpose of backing up or providing economic operation of its system
including its Firm Resources. In addition, any New Large Single Load
or portion of such load shall not be included in the Purchaser's firm
• loads hereunder prior to the date Bonneville is obligated to supply
such load with Firm Power pursuant to the terms of section 8(e) .
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Contractual obligations of the Purchaser to utilities outside its
normal service area may, if permitted by the terms of section 12(a) , •
be included in the Purchaser's Firm Resources, but shall not be
included in the Purchaser's firm loads hereunder. Estimated Firm
Peak Load and Estimated Firm Energy Load shall be referred to
collectively as °Estimated Firm Load.°
(b) Section 4 is amended as follows:
(1 ) Exhibit B is amended by deleting section 8(d) (3) and adding a
new section 8(d) (3) as follows:
°(3) Upon adoption of a methodology as provided in
section 4(f) (2) and section 4(e) (3) (G) pf P.L. 96-501 , Bonneville
will give notice of intent to adopt a policy, provide opportunity for
public comment, and publish draft procedures in the Federal Register'
for imposing surcharges. Such proposed policy shall include: •
(A) standards to-be met before Bonneville will excuse
surcharges which would otherwise be appropriate, consistent with
Bonneville's obligations to implement cost-effective
conservation measures to the maximum extent practicable;
(B) that Bonneville will impose surcharges to the extent
not excused or suspended under the terms of the policy;
(C) an opportunity for interested persons to present
views, data, questions, and arguments to Bonneville relevant to
the imposition of surcharges in specific instances, and the
adequacy of financial assistance made available by Bonneville;
(D) that surcharges imposed will be continued to the
extent and for the period projected energy savings attributable
to cost-effective model conservation standards are not achieved;
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(E) for recovery from the Purchaser of the additional
costs (including increases in the Utility's average system cost)
that Bonneville will incur because the projected energy savings
attributable to model conservation standards have not been
achieved, subject to the limitations set forth in
sections 4(f)(1 ) and 4(f)(2) of P.L. 96-501 ; provided, however,
that surcharges will not be levied as a result of an increase in
a Utility's average system cost except to the extent that the
Utility failed to implement conservation measures that are
designed to be cost-effective for its Consumers in terms of the
electric rates its Consumers pay."
(2) Exhibit B is amended by adding section 8(g) as follows:
"(g) Bonneville shall establish and apply a discount to the rate
or rates -of utility Customers with low system densities. The level
of such discount and the standards for determining which Customers
qualify for such discount shall be established pursuant to the rate
adjustment process described in this section.
After 5 years of experience in the application of such discount,
Bonneville shall review the level and standards of such discount.
Such review will occur independently of the rate adjustment process,
and at such time Bonneville and the Purchaser may consider an
amendment to this contract to fix the level of the discount and the
standards for Customer qualification for the balance of the term of
this contract, or such other amendments as the parties deem
appropriate. Any such amendments shall be by mutual agreement of
• Bonneville and the Purchaser. "
5
(3) Exhibit B is amended by deleting section 55 and adding a new •
section 55 as follows:
"55. Resale of Power. The Purchaser shall not resell Firm Power
delivered under this contract except to those Consumers and utilities
within its service area in the Pacific Northwest to the extent such
Consumers and utilities are normally dependent on the Purchaser 'for
their firm power supplies. The Purchaser shall not sell power from
its Firm Resources in such a manner as to increase the Purchaser's
Computed Peak Requirement or Computed Average Energy Requirement on
Bonneville in acy month. These prohibitions. on resale in this
section shall not be interpreted as a general prohibition against the
Purchaser simultaneously purchasing Finn Power from Bonneville and
selling power generated at its own facilities to other utilities or
entities, nor shall these prohibitions be interpreted to preclude the
Purchaser from reflecting the cost of Firm Power delivered under this
contract in pricing such sales to other utilities or entities."
(4) Exhibit D is amended by deleting Definition Z of section 7 and
adding a new Definition Z as follows:
'Z = The load growth of the Purchaser since passage of
P.L. 96-501 , and any deficits of investor-owned utilities,
determined by subtracting from Bonneville's estimate of the
Purchaser's Actual Firm Load for the Operating Year for
which the allocation will apply either (1 ) the Purchaser's
Actual Firm Load in the first Operating Year for which
Bonneville's load growth notice provided in section 10(e)
of' this agreement is effective for public body, cooperative
and Federal aVency Customers; or (2) the contribution to
the Purchaser s Assured Capabilities for such Operating
Year for a Purchaser on Computed Requirements or the
planning capability for a Purchaser on Metered Requirements
of any Firm Resources which were included as 5(b) (1 ) (A)
resources in the Purchaser's Firm Resource Exhibit for
investor-owned utilities. "Z" shall be deemed to be one •
for Customers where "Z" is less than one."
6
(5) Exhibit K is deleted and replaced by a new Exhibit K attached
hereto and by this reference made a part of this contract in accordance
with the specific provisions of this contract relating to Exhibit K.
(c) Section 8(1 ) is deleted and replaced by a new section 8(i ) as follows:
0(1 ) Compliance. Bonneville and the Purchaser agree that should
a Purchaser fail to report a New Large Single Load of which the
Purchaser has, or rbasonably should have had knowledge, such
Purchaser shall be backbilled from the date the increase in load
became a New Large Single Load. For this subsection only, such
backbilling shall include the following costs: (1 ) the difference
between the Priority Firm Power Rate Schedule or its successor rate
schedule and the New Resource Firm Power Rate Schedule or its
successor rate schedule; (2) interest charges on the backbilled
amount determined at Bonneville's prevailing interest rate; and (3) a
late payment charge on the backbilled amount. This section 8(i)
shall not apply if the Purchaser is an investor-owned utility."
(d) Section 9(e) is deleted and replaced by a new section 9(e) as follows:
°(e) The- limitations of subsection (b) above shall not apply if
the Purchaser has developed adequate resources to meet its load
growth including the increase in load resulting from service to a new
facility of a Consumer or additional service to an existing facility
of a Consumer and replace reductions in its Firm Resources which are
included as 5(b) (1 )(A) resources in its Firm Resources Exhibit. The
Purchaser shall be deemed to have developed adequate resources for
Bonneville to supply such increase in load if, on an estimated basis,
• the Purchaser has provided resources, which were dedicated to its
7
load as 5(b) (1 )(B ) resources or made available to Bonneville, equal
to the sum of: •
(1 ) reductions in 5(b) (1 ) (A) resources between the '79-8U .
Operating Year and the date specified in subsection (b) (2) above
which either:
(A) resulted from factors reasonably within the
control of the Purchaser; or
(B) the Purchaser could anticipate on the date it
gave notice .under subsection (b) above; and
(2) growth in Actual Firm Energy Load between:
(A) the first Operating Year for which Bonneville's
notice under section 10(e) is effective and the date
specified in (b)'(2) above for public bodies, cooperatives
and Federal agencies; or •
(B) the '79-80 Operating Year and the date specified
in (b) (2) above for investor-owned utilitiesa"
(e) Section 10 is amended by adding a new section 10(e) as follows;
NO For purposes of sections 9(e), 11 (b) (4) , and Definition Z
of Exhibit D only, prior to July 1 of any year Bonneville may notify
the Purchaser that Bonneville needs to acquire additional resources
to meet the Purchaser's load growth occurring after the start of the
Operating Year specified in the notice. Such Operating Year shall
not commence prior to the expiration of the fifth full Operating Year
after Bonneville notifies the Purchaser hereunder."
(f) Section 11 (b) (4) is deleted and replaced by a new section .11 (b) (4) as
follows:
8
" (4) If regional curtailment has been requested after July 1 ,
19839 because Bonneville is unable to acquire sufficient resources to
meet its firm obligations, Bonneville shall reduce the amount of load
curtailment determined in paragraph (3) above during any month if the
Purchaser's load growth as specified in subparagraph (A) below
exceeds the amount of resources. which the Purchaser has dedicated to
its own load or made available to Bonneville as specified in
subparagraph (B) below. Such amount of load curtailment for each
month shall be reduced partially or in its entirety by the amount
which (A) exceeds (B) below:
(A) the excess of the Purchaser's Actual Firm Energy Load
in average megawatts over the Purchaser's Actual Firm Energy
. Load in average megawatts for the same month during the
• Operating Year prior to the first Operating Year for which
Bonneville's load growth notice provided in section 10(e) of
this agreement is effective; and
(B) the annual firm energy capability in average megawatts
of (i ) resources acquired by Bonneville from the Purchaser under
P.L. 96-591 ; and (ii) the portion of the Purchaser's Firm
Resources which are included as 5(b) (1 )(B) resources in its Firm
Resources Exhibit. Such resources shall not include
conservation programs to the extent such programs have been
reflected in the Purchaser'a Actual Firm Energy Load in
subparagraph (A) above."
(g) Section 12(b) (10) is deleted and replaced by a new section 12(b) (10)
. as follows:
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"(10) Any Firm Resource may be removed from the Purchaser's
Firm Resources Exhibit for any Operating Year or Years to the extent •
that equivalent peak and energy capability from another firm resource
is added -to the Purchaser's Firm Resources Exhibit for such year or
years. Such added resource shall be one which was not planned as of
December 5, 1980, to meet the .firm load growth in the Pacific
Northwest or, if so planned, has been offered for sale to Bonneville
and Bonneville has declined such offer."
(h) Section 14 is amended by adding a new section 14(e) as follows:
"(e) Nothing in this Power Sales Contract shall be construed to
create, or to preclude, adversely affect or otherwise limit in any
manner, rights of the Purchaser to purchase nonfirm energy from
Bonneville under appropriate terms and conditions in *eparate
agreements at the rate specified in the Wholesale Nonfirm Energy Rate •
Schedule or its successor."
(i ) Section 17 is amended by resequencing subparagraphs 17(d) (1 ) (B)
through (D) to 17(d) (1) (C) through (E) and adding a new section 17(d)(1 )(B) as
follows:
"(B) Except for the Flexibility Account balance previously
retained in subparagraph (D) below, the amount of change in the
Flexibility Account for any month of the Operating Year shall be
limited to the sum of the following:
(i) For Firm Resources which the Purchaser includes in
Coordination Agreement planning, such monthly change shall not
exceed the limit allowed pursuant to section 9(m) (3) of the
Coordination Agreement; and
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(ii ) For Firm Resources which the Purchaser does not
include in Coordination Agreement planning, such monthly change
shall not exceed the sum of the following:
(a) The algebraic difference for such month between
the Purchaser's Estimated Firm Energy Load less the
Estimated Firm Energy Load, if any, submitted under
Coordination Agreement planning and the Purchaser's Actual
Firm Energy Load less the Actual Firm Energy Load, if any,
submitted under the Coordination Agreement; and
(b) The algebraic difference in energy capability .
between the actual maintenance outages of such resources
for such month and the scheduled maintenance outages of
such resources used in the calculation of the Purchaser's
Assured Capability for such month; and
(c) For specific other purposes as mutually agreed by
Bonneville and the Purchaser."
(j ) Section 17(j) is amended by adding a new section 17(j ) (4) as follows:
'(4) Nothing in this section 17(j ) shall be construed to limit,
affect or otherwise modify Bonneville's obligation to'acquire power
for the Purchaser as provided in section 9(1 ) of P.L. 96-501 ."
IN WITNESS WHEREOF, the parties hereto have executed this amendatory
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agreement in several counterparts.
UNITED STATES OF AMERICA •
Department of Energy
By
Bonneville Power Administrator
By
Title
Date
ATTEST:
By
Title
Date
(WP-PCI-1214c)
12
Exhibit K
. Table 1 , Pagel of 1
Contract No. DE41S79-H1bP
(Purchaser)
Effective on the effective
date of this amendment
New Large Single Load Determinations Exhibit
(This exhibit reflects determinations made pursuant to section 8 of this
contract as of the effective date set forth above. )
TABLE 1
LIST OF PURCHASER' S LOADS WHICH ARE NEW LARGE SINGLE LOADS
Description of Facility Location
No determinations have been
made as of the effective
date set forth above.
• (WP-PCI-1214c)
Exhibit K .
Table 2, Page 1 of 1
Contract No. DE-44S79-81BP
(Purchaser)
Effective on the effective
date of this amendment
Contracted For, Committed to Determinations Exhibit
(This exhibit reflects determinations made pursuant to section 3(13) of
P.L. 96-501 and section 8 of this contract as of the effective date set forth
above. )
TABLE 2
L;ST OF PURCHASER'S LOADS AND AMOUNTS WHICH WERE
CONTRACTED FOR, OR COMMITTED TO PRIOR
TO SEPTEMBER 1 , 1979
Amount of Firm
Energy Contracted for
or Committed to
Description of Facility Location as of 9/1/79
Ave. W •
No determinations have been
made as of the effective
date set forth above.
(WP-PCI-1214c)